Enjoy this free access to selections from The ROI's proprietary content. Ready for more? The Members-Only Collection includes even more for owners about inventory management and Open-to-Buy planning.
How-To Info, Online Calculators for Retail Inventory Control and Open-to-Buy Planning
There is a cause-effect connection between sales, gross margins, and inventory turns.
Effectively managing that balancing act is part of the art of retailing.
Ahh, the appeal of new items. Or, the demands of your customer's ever-growing "wish list" items.
But, when you are also trying to control inventory, and keep turns up, the challenge is, "Really...which items should you buy?"
As many retailers are only too aware, if you are not vigilant, you may experience bloated inventories, which can cascade into cash flow problems very quickly.
Here are six key questions for you and your buyers to ask yourselves as you consider new items.
We think of it as an "entry exam" for merchandise.
Use them to quickly see, "Which items actually deserve to be in your store?"
New items? Of course. The customers always want what's new! But, too much of a good thing? Not any more!
Quick Quiz for New Items
What's your inventory's SALES Potential?
Given your annual sales plan, do you have enough inventory?
Most retailers know their average inventory over the year. But the question is this: What are the likely sales from that much inventory?
Here's how to find out. Use our Index of Sales Potential calculator. See what sales volume other retailers achieve.
Find out now
Merchandise Planning: Back to the Basics
Sound merchandise management is crucial for the survival and prosperity of your retail business.
It’s not just another “paper exercise”—it can mean the difference between strong, positive cash flow or a constant battle to pay your bills.
It can keep your operation profitable even in times of less-than-robust sales.
How to Shape Up Your Inventory? Manage Inventory Turns
If your store is like many other independent retailers, it’s probably overstocked much of the time.
This excess inventory is like excess fat:
If you’d like to time your inventory flow so you always have fresh merchandise and a healthy turnover rate, consider this shape-up plan.
It will help trim away excess inventory without cutting into the muscle of your stock.
The Diamond of Doom
The High Costs of Excess Inventory
As a retail owner, one of your primary goals is to boost profit margins—right?
You know that good inventory management is essential to producing top-notch profits.
You also know that bad inventory management can cause big problems with profit.
However, you may not know the actual cause-and-effect of bad inventory management.
How to Cut Inventory – Fast!
Is excess inventory threatening your store's survival?
Here are 10 tips to turn your inventory into cash – quickly!
Sometimes retailing doesn’t quite turn out as you had planned.
Did last year fail to live up to what you predicted—and budgeted for?
Did you overestimate the popularity of your generous order of a particular product?
Are there areas of your inventory brimming with overstock?
Relax! There is a way out of this mess!
If you find yourself long on inventory and short on profits—whether from overbuying, expanding lines too quickly, or overestimating sales, don’t panic.
You still can whip your inventory back into shape before it devours your profits.
Getting Through the Retail Maze with GMROI
(Gross Margin Return on Inventory Investment)
One of the best tools for measuring and managing the productivity of your inventory investment is GMROI - Gross Margin Return on Inventory Investment.
It's fast and easy to calculate.
It is dynamic (some call it the "earn 'n turn" measure.)
Best of all, it provides powerful insights specifically for retailers.
That's why The ROI calls GMROI "the #1 measure of inventory productivity."
Save time! Know It NOW! bundle for busy retailers
We get it. There is a lot of how-to information here at The Institute.
And sometimes, you just "Need to Know it NOW!"
So, we've put together some "Know It NOW!" Bundles. Go here to see the BUYER'S Bundle
Watch • Listen • Practice • Do-It-Yourself • Know It NOW!
The ROI's Members-Only Collection includes even more for owners about inventory management and Open-to-Buy planning.
Online Calculators for Retail Projections - See in advance retail profits and cash flow - Integrated!
Explanatory How-To Articles - Used and loved by retailers worldwide!
Webinars from The Co-Founders - Lively and empowering!
Online, Self-Paced eLearning Courses - Learn it once. Use it forever!
Short How-To Videos - See it in action!
Self Evaluation Tools - Get Quick Insights
And much more!
And even more for ROI Members!
Click here for info
Look at all that's here for retailers to use. Available nowhere else. Specially for busy retailers!
Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"